| The economic stimulus bill generated a lot of talk about taxes. As we work our way out of this economic mess, we need innovative, effective solutions to taxes - not just short term band-aids. We need to move in a new direction. Here's a big idea: let's phase in a carbon tax, to protect our planet and reward productive investments.
How does this work? Raise the cost of carbon-based fuels through some form of federal tax on carbon emissions; these new revenues should be fully or partially offset by cuts in the income, payroll, or corporate income taxes.
In other words, let's tax the things we don't want and use the revenues to reduce taxes and costs on inventors, investors and innovative new businesses in the development of alternative energy sources. By permanently cutting taxes on workers and investors, we can help the economy recover through growth and higher employment- and have a cleaner, greener environment.
It's extraordinary that groups ranging from the Sierra Club to the American Enterprise Institute recognize that a carbon tax makes sense for America. If you are up for a good read, check out: http://www.brookings.edu/~/med...
And, to shamelessly plug my own writing on the topic, http://finance.yahoo.com/exper...
In addition, let's ensure that the stimulus bill starts this process, by shifting the transportation funding formulas to increase the amount that is dedicated to mass transit. Historically, only 20% of federal funding goes to transit with the remaining 80% focused on automobile infrastructure. This is out of whack with the future. By investing more in transit, and removing various administrative hurdles, we can create more sustainable communities throughout the nation.
I know that the transition to a carbon tax will not be easy, but our current path is reckless and short-sighted. It must change.
I'm running for Congress in the 5th District in Illinois, because more than at any other point in my lifetime, good policy truly matters. I'm an economics expert who can bring big ideas - and practical solutions - at a time this is needed most.
Our national and local economy is the single most important issue in this election. We're all scared. We've lost jobs. We've watched our retirement and college savings shrink, or disappear. We put our trust in our financial system, and it robbed us. Congress must act to stop the downward spiral and- more importantly- take steps to make sure this can never happen again. The carbon tax is one tool in our toolbox that can fix our energy and environmental issues for the long term. |
